Taxation of Artistes and Sportsmen in International Tax Law

S. 301Taxation of the Other Income of Artistes and Sportsmen at Interposition of a Company according to the OECD Model

Boris Gnoth

S. 303I. Introduction

In this paper, the taxation of the other income of artistes and sportsmen by the interposition of a third person is analysed. It will be shown that there are important differences between the taxation of the income accrued to another person and the income paid directly to the sportsman or artiste himself. Examples of such other income include the royalties from intellectual property, income from advertising, pensions or even income from inactivity.

II. Historical developments

2.1 Tax treaties reducing double taxation

The reciprocal economic relations between advanced countries increased in the twentieth century. In 2005 the sixth update of the OECD “Model tax convention on income and on capital” (further “OECD Model”) was edited, which regulates taxing rights between two states in the taxation of several types of income and tries to suppress juridical double taxation.

International juridical double taxation can be characterized as the imposition of comparable taxes in two (or more) States on the same taxpayer...